PENAMPANG: United Progressive Kinabalu Organisation (Upko) president Datuk Ewon Benedick has urged a review of the 1976 Petronas Agreement on oil royalties if claims that it was never presented to or approved by the Sabah Cabinet are true.
Speaking after delivering his policy speech at the 17th Upko Triennial Delegates' Conference at the KDCA Unity Centre Hall, Ewon highlighted recent disclosures by former Chief Minister Tan Sri Pairin Kitingan that the agreement granting Sabah a five per cent royalty lacked State Cabinet deliberation.
Rejecting the stance that oil and gas matters fall exclusively under federal jurisdiction due to the Petroleum Development Act 1974, Ewon maintained that any decision significantly impacting Sabah requires state government consent.
He also demanded the full realisation of Sabah's 40 per cent constitutional revenue entitlement, dismissing existing interim payments as mere temporary measures that should not be indefinitely delayed due to global conflicts.
Ewon proposed a mechanism similar to the 1960s arrangement with Singapore, where 40 per cent of federal revenue collected in Sabah is retained directly by the State, adding that Upko delegates will debate the stance before presenting the mandate to the Gabungan Rakyat Sabah (GRS) leadership and State Government.
